Accountants well placed to help SMEs weather fuel volatility, COSBOA says

“Accountants are very well placed to give support and advice to small businesses during this period,” Cappuccio said. “I think it's about helping small businesses understand exactly what this shock can look like in terms of the impact on their finances and cash flow.

“There's also a role that accountants can probably play in terms of working with banks or finance providers to encourage their clients to have conversations about short term or long term solutions that might be appropriate.”

Small fuel hikes could have direct consequences for businesses’ daily operations, especially for those operating on tight margins, Cappuccio said. The fuel shock had also come as small businesses grappled with rising costs in other areas, compounding the challenge.

“Fuel is one part of a bigger picture. Small businesses are already managing rising energy, insurance, wage and compliance costs,” she said.

“When these pressures combine, it reduces the ability of businesses to absorb shocks, delays investment and places further strain on viability.”

Cappuccio warned that small businesses could not absorb ongoing cost increases indefinitely, and that regulators should start considering targeted support if the fuel crisis persisted.

She also called on banks and government agencies such as the ATO to consider taking a more lenient approach to debt collection as pressures on small businesses continued to compound.

“We encourage banks and the ATO to take a practical and proportionate approach to recovery to help ensure small businesses can maintain cashflow,” Cappuccio said.

“If volatility persists, targeted and time-limited support may be needed to help businesses manage sudden cost increases.”

As a longer term measure, COSBOA added it would support productivity-boosting policy measures to simplify compliance and boost investment.

 “It is critical we remain focused on the policy settings that support small business productivity, including reducing the cost of doing business, simplifying compliance and enabling investment,” Cappuccio said.
 
“Measures that support investment in more efficient vehicles, equipment and technology will help small businesses reduce their exposure to future shocks over time.”